Grain Marketing

Grain Marketing

Grain Marketing

Synopsis

The world grain industry affects our daily lives in ways both large and small. It influences what we consume for breakfast, lunch, and dinner and provides at least 40 percent of the world's food supply. The U. S. and world grain industry affects our income, our investments, and global politics. As world population and therefore global demand for grain grows, the volume handled by the U. S. grain industry will continue to expand, demanding not only improvement in crop yields but also continued efforts to compete in increasingly sophisticated international markets. This newly revised, fully updated text provides a practical, comprehensive overview of grain marketing that is useful to both the upper-level undergraduate studying agricultural marketing and the professional working in the industry. Grain Marketing blends several approaches to the study of commodity marketing, combining the institutional, functional, market structure, and analytical and behavioral systems approach to grain marketing. The book includes basic background information for newcomers to the subject of agricultural marketing as well as more rigorous treatment of advanced subjects. The book's overall plan allows the student to follow the movement of the major grains- corn, wheat, and soybeans- from farm production to final consumption. Along the way, it provides a detailed description of the worldwide system, encompassing local and multinational corporations, state agencies and boards, national trade and agricultural policies, and the cash and futures markets that serve this industry.

Excerpt

Grain has an ever-present influence in our daily lives. It is consumed at every meal or snack, either directly or indirectly. It is a part of your breakfast cereal, toast, eggs, bacon, and rolls; your lunch of soup, sandwich, and milk; your dinner -- red meat, poultry, seafood, pasta; and appetizers, cocktails, and after-dinner drinks. Grain is a versatile commodity as well as the world's most important diet staple.

This revised edition gives the student an opportunity to learn some basics about the present world grain industry and its operation. the U.S. grain industry is a central part of the world grain industry, which includes a series of important components as grain is moved from the "farm gate" to final consumption. Government policies, the farm and trade policies of the United States and other countries that trade in the world market, affect both the world grain industry and the ability of the United States to compete in it. Trade policy issues have become a greater concern in the 1990s as a result of major changes in the world's political structure and the growing prominence of international trade associations. the changes in the former Soviet Union and Eastern Europe have created new market opportunities. However, trade continues to be restricted in Japan and the European Community.

The U.S. grain industry services markets throughout the world. It faces stiff competition that often is motivated by a different set of values and trading strategies than those experienced within the U.S. system. To further complicate the trade relationships, dominant grain marketing firms operating in the United States are, in many instances, multinational corporations. a large share of their transactions often are with a single state agency or board that serves as a nation's sole buyer of grains and grain products. the complexity of this situation makes it difficult to administer national trade policy. Students are encouraged to study the ramifications of these trade relationships and to compare the effectiveness of alternative marketing systems.

The volume of grain handled by the U.S. grain industry will continue to escalate in the coming decades as world population, incomes, and livestock inventories increase. This scenario, of course, assumes a continuation of the ability to improve crop yields and to maintain . . .